Explanation
Background: Pursuant to RFQ011046 and as authorized by Ordinance No. 0650-2019, the City entered into an Insurance Brokerage and Risk Engineering Services Contract with USI Insurance Services, LLC for an initial one-year term and four (4) additional automatic one-year renewals with each renewal term subject to the appropriation of funds by City Council and the certification of funds availability by the City Auditor.
This ordinance authorizes the Director of Finance and Management to renew the first of four (4) automatic one (1) year renewal terms of the Insurance Brokerage and Engineering Services Contract with USI Insurance Services, LLC; to bind coverage for all City insurance programs for the term August 1, 2020 through July 31, 2021; and to expend up to: $395,000.00 from the Department of Finance and Management 2020 budget, $150,000.00 from the Department of Public Safety 2020 budget, and up to $427,000.000 from the Department of Public Utilities 2020 budget for payment of brokerage and policy premiums associated with the City’s 2020-2021 insurance programs. This ordinance also authorizes the Director of Finance and Management to approve any necessary changes in the City's insurance program, such as additions of buildings, aircraft, vehicles, modify coverage limits, and additions to type or lines of coverage during the 2020-2021 policy term.
The Contract Compliance Number for USI Insurance Services is 13-3771734 with an expiration date of 03/21/2021.
Fiscal Impact: The funding for this contract and the cost of all insurance premiums is budgeted and the funds are available within the Department of Finance and Management 2020 Employee Benefits Fund Budget ($395,000.00); the Department of Public Safety 2020 General Fund Budget ($150,000.00); and the Department of Public Utilities Water Operating Fund ($171,000.00), Sewer Operating Fund ($220,000.00) and Power Operating Fund ($36,000.00). This ordinance authorizes the expenditure of up to $972,000.00 for premiums and brokerage fees associated with insurance coverage necessary to protect City assets.
Emergency action is requested to allow for uninterrupted insurance brokerage services and the immediate binding of property, boiler and machinery, general and excess liability, and aviation insurance coverage for the insurance year 2020-2021 to protect the City’s assets.
Title
To authorize the Director of Finance and Management to renew the first of four (4) automatic one (1) year renewal terms of the Insurance Brokerage and Engineering Services Contract with USI Insurance Services, LLC; to authorize the expenditure of up to $972,000.00 from various funds; and to declare an emergency. ($972,000.00)
Body
WHEREAS, pursuant to Ordinance No. 0650-2019, the City of Columbus entered into an Insurance Brokerage and Risk Engineering Services Contract with USI Insurance Services, LLC for a five year period consisting of an initial one (1) year term and four (4) automatic consecutive one-year renewal terms; and
WHEREAS, it is necessary to authorize the Director of Finance and Management to renew the first of four (4) automatic one (1) year renewal terms of the Insurance Brokerage and Engineering Services Contract with USI Insurance Services, LLC subject to the City’s approval by the appropriation of necessary funds by Columbus City Council and certification of availability of funds by the City Auditor; and
WHEREAS, it is necessary to authorize the expenditure of funds for insurance brokerage and risk engineering services contract with USI Insurance Services and for the cost of the City's selected insurance policies for the insurance year commencing August 1, 2020 and terminating July 31, 2021; and
WHEREAS, it may be necessary for the Director of Finance and Management to make changes in the City's insurance program to modify coverage limits, insure additional buildings, aircraft, vehicles, add types or lines of coverage that may result in additional premium costs during the 2020-2021 policy term; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Finance and Management in that it is immediately necessary to authorize the expenditure of funds for insurance brokerage and risk engineering services contract for the City's insurance programs and the actual underwriting cost of the City's selected insurance policies to ensure that insurance coverage continues without interruption thereby preserving the public health, peace, property, safety and welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Finance and Management be and is hereby authorized to renew the first of four (4) automatic one (1) year renewal terms of the Insurance Brokerage and Engineering Services Contract with USI Insurance Services, LLC commencing August 1, 2020 and terminating July 31, 2021.
SECTION 2. That the Director of Finance and Management be and is hereby authorized and directed to pay costs for the contract with USI Insurance Services for provision of insurance brokerage and risk engineering services and for the cost of insurance premiums for property (casualty), boiler and machinery, general liability, excess liability, and aviation insurance policies, and to make any necessary changes in the City's insurance program required during the 2020-2021 term and pay the associated costs of any additional insurance premiums incurred.
SECTION 3. That the expenditure of $395,000.00, or so much thereof that may be necessary in regard to the action authorized in Section 1 and Section 2, be and is hereby authorized and approved in Fund 5502 Employee Benefits Fund in Object Class 3, Contractual Services per the accounting codes in the attachment to this ordinance.
SECTION 4. That the expenditure of $150,000, or so much thereof that may be necessary in regard to the action authorized in Section 1 and Section 2, be and is hereby authorized and approved in Department of Public Safety Fund 1000 General Fund in Object Class 3, Contractual Services per the accounting codes in the attachment to this ordinance.
SECTION 5. That the expenditure of $220,000.00, or so much thereof that may be necessary in regard to the action authorized in Section 1 and Section 2, be and is hereby authorized and approved in Department of Public Utilities Sewer Operating Fund 6100 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 6. That the expenditure of $171,000.00, or so much thereof that may be necessary in regard to the action authorized in Section 1 and Section 2, be and is hereby authorized and approved in Department of Public Utilities Water Operating Fund 6000 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 7. That the expenditure of $36,000.00, or so much thereof that may be necessary in regard to the action authorized in Section 1 and Section 2, be and is hereby authorized and approved in Department of Public Utilities Power Operating Fund 6300 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 8. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 9. That the expenditures as authorized in Section 2 shall be paid upon order of the Director of Finance and Management and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 10. That the City Auditor is authorized to make any accounting changes necessary to ensure that this contract is properly accounted for and recorded accurately on the City’s financial record. That the City Auditor is authorized to make any changes to revise the funding source for any contract or contract modification associated with this ordinance.
SECTION 11. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.